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Grits Inc. has a cost of equity of 17%, and the yield to maturity on its bonds is 12%. If the company has $80 million
Grits Inc. has a cost of equity of 17%, and the yield to maturity on its bonds is 12%. If the company has $80 million in bonds and $120 million in equity, find its weighted average cost of capital (WACC). Grits Inc. marginal tax rate is 35%. Grits Inc. has no preferred stock. (Round your final answer to two decimal places.)
Group of answer choices 11.88% 11.76% 13.32% 10.20%
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